solve these problems:-

In our progressive example, B&T Enterprises is considering the replacement of a 2-year-old kiln with a new one to meet emerging market needs. When the current tunnel kiln was pur- chased 2 years ago for $25 million, an ESL study indicated that the minimum cost life was be- tween 3 and 5 years of the expected 8-year life. The analysis was not very conclusive because the total AW cost curve was flat for most years between 2 and 6, indicating insensitivity of the ESL to changing costs. Now, the same type of question arises for the proposed graphite hearth model that costs $38 million new: What are the ESL and the estimated total AW of costs? The Manager of Critical Equipment at B&T estimates that the market value after only 1 year will drop to $25 million and then retain 75% of the previous year's value over the 12-year expected life. Use this market value series and i = 15% per year to illustrate that an ESL analysis and marginal cost analysis result in exactly the same total AW of cost series.The cost characteristics of a CO testing machine at Dytran Instruments are shown below. The cost of a new fester is $100,000. The equation for determin- ing the AW of keeping the tester for 2 years is: (a] AW = -100,1004/PAS) - [42,010(P/F,1) + 4700(P/F31 4/PS) +40,000(4/F,5) (8) AW = -100,000(4/P12) - [42000(P/F,1) + 47000(P/F12)](4/P13) + 4000(4/F 2) (C) AW = -100,000(4/242) - 47,000 () AW = -100,000(4/243) - 42,000 Machine Age, MBO Costs, Salvage Value Years $ per Year at End of Wear, $ -42,000 -47.0DO -49.000 31,000 -90,000 24,030 -52,000 15 030 -54,000 -63,000 -67,000\f\f\f